Douyu International Holdings Ltd (DOYU) 2023 Q4 法說會逐字稿

Good morning and good evening, ladies and gentlemen. Thank you and welcome to DouYu International Holdings Limited's fourth quarter and full year 2023 earnings conference call. At this time, all participants are in a listen-only mode. We will be hosting a question-and-answer session after management's prepared remarks. I will now turn the call over to the first speaker today, Ms. Liling Kong, IR Director at DouYu, please go ahead, ma'am.

早安，晚上好，女士們先生們。感謝並歡迎參加鬥魚國際控股有限公司 2023 年第四季及全年財報電話會議。此時，所有參與者都處於只聽模式。在管理階層準備好發言後，我們將舉辦問答環節。現在我將把電話轉給今天第一位發言者，鬥魚IR總監孔麗玲女士，請女士發言。

Thank you. Hello, everyone. Welcome to our fourth quarter and full year 2023 earnings call. Joining us today and Mr. Mingming Su, Chief Strategy Officer; Mr. Hao Cao, Vice President of Finance; and Mrs. Simin Ren, Vice President from the Interim Management Committee. You can refer to our fourth quarter and full year 2023 financial results on our IR website at ir.douyu.com. You can also check a replay of this call when it becomes available in a few hours on our IR website.

謝謝。大家好。歡迎參加我們的 2023 年第四季和全年財報電話會議。今天加入我們的是首席策略長蘇明明先生；曹浩先生，財務副總裁；臨時管理委員會副主任任思敏女士。您可以在我們的 IR 網站 ir.douyu.com 上查看我們的第四季度和 2023 年全年財務業績。您也可以在幾個小時後在我們的 IR 網站上查看此電話會議的重播。

Before we start, please note that today's call may contain forward-looking statements made pursuant to the Safe Harbor provision for the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on management's current expectations and observations that involve known and unknown risks, uncertainties, and other factors not under the company's control, which may cause actual results, performance or achievements of the company to be materially different from the results, performance, or expectations implied by these forward-looking statements.

在我們開始之前，請注意，今天的電話會議可能包含根據 1995 年《私人證券訴訟改革法案》的安全港條款做出的前瞻性陳述。這些前瞻性陳述是基於管理階層目前的預期和觀察，涉及已知和未知的風險、不確定性以及公司無法控制的其他因素，可能導致公司的實際結果、績效或成就與結果有重大差異這些前瞻性陳述所暗示的、績效或期望。

All forward-looking statements are expressly qualified in their entirety by the cautionary statements, risk factors, and the details of the company's filings with the SEC. The company undertakes no duty to revise or update any forward-looking statements for selected events or circumstances after the date of this conference call. I will now speak on behalf of our Interim Management Committee on business updates and the call will be handed to our Vice President of Finance, Mr. Hao Cao, for financial discussion.

所有前瞻性陳述均明確符合警示性陳述、風險因素以及公司向 SEC 提交的文件的詳細資訊。在本次電話會議日期之後，本公司不承擔修改或更新針對選定事件或情況的任何前瞻性陳述的責任。我現在將代表我們的臨時管理委員會就業務最新情況發言，電話將轉交給我們的財務副總裁曹浩先生進行財務討論。

The year 2023 continue to be fought with challenges. Amid this backdrop, we remain fully committed to executing our long-term growth strategy of fostering a vibrant, diverse, game centric content ecosystem, wealth by our advertising content across our platform. We deepened our cooperation with game developers to enhance commercialization while adjusting our revenue and marketing strategies to be more ROI-driven. At the same time, we continuously optimize costs and expenses.

2023年，我們仍將面臨挑戰。在此背景下，我們仍然完全致力於執行我們的長期成長策略，即培育一個充滿活力、多元化、以遊戲為中心的內容生態系統，透過我們平台上的廣告內容創造財富。我們深化與遊戲開發商的合作，加強商業化，同時調整收入和行銷策略，更重視投資報酬率。同時，我們不斷優化成本和費用。

As suggesting net level, we successfully transformed losses into gains, achieving our adjusted net profit of RMB154 million for the full year of 2023. In addition, we continued to place significant emphasis on compliance management and regulatory improvements across our platform. These efforts are dedicated to continue to nurture our platform's ecosystem with enhanced compliance, healthy growth, and sustainability.

依照淨利水平，我們成功轉虧為盈，2023年全年實現調整後淨利1.54億元。此外，我們繼續高度重視整個平台的合規管理和監管改進。這些努力致力於持續培育我們平台的生態系統，提高合規性、健康成長和永續性。

Navigating the complex and the evolving macroeconomic dynamics and operating landscape, we proactively tackled short-term platform challenges in the fourth quarter. We fully enhanced our compliance efforts to ensure a steady stream of premium content output and effectively maintain the overall stability of our business operations.

面對複雜且不斷變化的宏觀經濟動態和營運格局，我們在第四季度積極應對短期平台挑戰。我們全面加強合規工作，確保優質內容源源不絕輸出，有效維護業務運作的整體穩定性。

In the fourth quarter of 2023, our mobile MAUs were RMB51.7 million, and our quarterly paying users was 3.7 million. With 2024 underway, we are zeroing in on harnessing our three core strengths, deeply rooted streamer resources, a rich content ecosystem, and close cooperation with game developers. In doing so, we can ensure operating stability and add healthy development across our platform. First, we are building on our deep-rooted streamer resources by intensifying our cooperation with game developers and content on operation fronts.

2023年第四季度，我們的行動月活躍用戶數為人民幣5,170萬元，季度付費用戶為370萬。2024年即將到來，我們將著力發揮三大核心優勢：深厚的實況主資源、豐富的內容生態以及與遊戲開發商的密切合作。這樣做，我們可以確保營運穩定性並促進整個平台的健康發展。首先，我們深耕主播資源，加強與遊戲開發商和內容營運的合作。

There, we are continuously produce premium content and upgrading content operations. Cementing and advertising DouYu's value as a vibrant game centric content ecosystem. Additionally, we will heighten our efforts to diversify our revenue streams. We will accomplish this by collaborating with more game developers on commercial endeavors and by bringing promotions and game sales to even more gaming segments through diverse business partnership models.

在那裡，我們不斷生產優質內容並升級內容營運。鞏固和宣傳鬥魚作為充滿活力的以遊戲為中心的內容生態系統的價值。此外，我們將加強實現收入來源多元化。我們將透過與更多遊戲開發商進行商業合作，並透過多樣化的商業合作模式將促銷和遊戲銷售帶到更多的遊戲細分市場來實現這一目標。

At the outside of the year, we also streamlined our organizational structure, transforming our pivotal content ecosystem business units into three core divisions comprising streamers, content, anyone and game developers. With the formation of this primary union, we believe we can further improve our operating efficiency by integrating and utilizing our key resources.

年外，我們也精簡了組織架構，將關鍵的內容生態系統業務部門轉變為三個核心部門，包括主播、內容、任何人和遊戲開發者。隨著這個初級聯盟的成立，我們相信透過整合和利用我們的關鍵資源，我們可以進一步提高我們的營運效率。

Moreover, leveraging our ongoing efforts to enhance compliance standards and execution across the platform. We will further refine our revenue structure to improve the quality of our revenue streams and continuously optimizing cost and expenses. This initiative provide us with better agility to navigate the evolving market dynamics and challenges fortifying our company's foundation for long-term development.

此外，利用我們持續的努力來提高整個平台的合規標準和執行力。我們將進一步優化收入結構，提高收入質量，持續優化成本費用。這項措施使我們能夠更靈活地應對不斷變化的市場動態和挑戰，從而鞏固我們公司長期發展的基礎。

With that overview, I'd like to review some details of our business operations during the quarter. In the fourth quarter of 2023, our mobile MAUs were RMB51.7 million, showing stability on a sequential quarter basis and a decrease of 9.9% year over year as we fine-tune our user acquisition strategy. As you may recall, beginning in early 2023, we began emphasizing user quality and cutting back our low ROI marketing spending, which quickly reduce the customer acquisition expenses.

有了這個概述，我想回顧一下本季我們業務運營的一些細節。2023年第四季度，我們的行動端月活躍用戶數為人民幣5,170萬元，環比穩定，隨著我們微調用戶獲取策略，年減9.9%。您可能還記得，從 2023 年初開始，我們開始強調用戶品質並削減低 ROI 行銷支出，從而迅速降低了獲客費用。

On a year-over-year basis, this led to a lack of user acquisition from promotional channels and the decline in MAUs. Quarter over quarter, on the other hand, MAU performance exceeded our expectations given the high base in the third quarter summer peak season. Our effective content driven growth strategy continued to attract and retain high-quality users, supporting any use stability quarter over quarter.

與去年同期相比，這導致促銷管道獲取用戶的不足以及每月活躍用戶數的下降。另一方面，考慮到第三季夏季旺季的高基數，季度環比的月活躍用戶表現超出了我們的預期。我們有效的內容驅動成長策略持續吸引並留住高品質用戶，支援季度與季度之間的使用穩定性。

Specifically, we were able to attract new users and boost user retention through the continued development of our platform's diversified commercial initiatives, promotions of game version updates, and new game team and operational activities feature high-quality streamers.

具體來說，我們透過平台多元化商業舉措的持續發展、遊戲版本更新的推廣以及以優質主播為特色的新遊戲團隊和營運活動，吸引了新用戶並提高了用戶保留率。

Second, we rolled out an entry of exclusive features and content offerings during official gaming events forecast, which activated user engagement. This quarter, we broadcasted over 30 large scale official e-sports tournaments, including the S13 League of Legends World Championship, Dota 2 TI12 International Championship, King Pro League Challenger Cup and the Championship, [KOF Five Star] 2023, China Regionals and World Championship, as well as the exclusive Valorant Championships Tour 2023.

其次，我們在官方遊戲活動預測期間推出了一系列獨家功能和內容，從而激活了用戶參與。本季度，我們轉播了30 多場大型官方電競賽事，包括S13 英雄聯盟世界錦標賽、Dota 2 TI12 國際錦標賽、King Pro League 挑戰者杯及錦標賽、【KOF 五星級】2023、中國賽區和世界賽等錦標賽，以及獨家 2023 年勇敢錦標賽巡迴賽。

In terms of term and content operations, in addition to our derivative commentary and reveal programs, we upgraded real-time interactive features to further boost user engagement. For example, during the League of Legends World Championship, we introduced a professional data scoreboard in our live streaming sessions, allowing hardcore gamers to quickly access the strength of players and teams.

在詞條和內容營運方面，除了衍生解說、揭秘節目外，我們還升級了即時互動功能，進一步提升用戶參與度。例如，在英雄聯盟世界賽期間，我們在直播中引入了專業的數據記分牌，讓鐵桿玩家能夠快速了解選手和戰隊的實力。

Moreover, we have intensified our investment in interactive features alongside the [MOAT fall list] a best and worst player voting feature initiated during the LPL Summer Split, we added a player rating section, enabling users to rate and comment on players after each game fulfilling users' desire for frequent interactions.

此外，我們還增加了對互動功能的投入，除了LPL夏季賽期間推出的【MOAT秋季榜】最佳和最差選手投票功能之外，我們還增加了選手評分部分，用戶可以在每場比賽結束後對選手進行評分和評論用戶對頻繁互動的渴望。

In addition, during the official gaming events co-streamed live commentary, the player rating feature garnered highly positive feedback from streamers, enabling streamers to rate players, enhance user emotion, and enjoyment in the viewing experience, fostering lively discussions and heighten engagement.

此外，在官方遊戲賽事聯播直播解說期間，玩家評分功能也獲得了主播的高度好評，主播可以對玩家進行評分，增強用戶情緒和觀看體驗的樂趣，促進熱烈討論，提高參與度。

Moreover, we have pretty actively expanded our presence in new of facial e-sports tournaments, for instance, with Valorant, a new game known for its competitive appeal and captivating gameplay sense to our attentive operations during the game's initial launch and our hardcore user base.

此外，我們也非常積極地拓展了新的臉部電競賽事，例如《Valorant》，這款新遊戲以其競技吸引力和迷人的遊戲感而聞名，在遊戲首次推出時我們的細心操作和我們的鐵桿用戶群。

In addition to regulatory tournaments like Valorant's CN Evolution Series, we secured the exclusive live streaming rights to [TAEM] Valorant Global Invitational featuring top-tier teams and enrich user experience with a wide area of premium e-sport content. Upon comprehensive evaluation of our e-sports content offerings across the platform, we promotely adjusted the balance between copyrighted tournaments and self-produced content, achieving synergistic integration of our premium content offerings, while effectively balancing all our content cost.

除了《Valorant CN Evolution 系列》等監管賽事外，我們還獲得了 [TAEM] Valorant 全球邀請賽的獨家直播權，該賽事匯聚了頂級戰隊，並透過廣泛的優質電競內容豐富了用戶體驗。透過全平台電競內容的全面評估，我們推動調整版權賽事與自製內容的平衡，實現優質內容的協同整合，同時有效平衡各內容成本。

Throughout the fourth quarter, we produced over 60 gaming events, including the KPL Academy Tournament 2023, aligned with KPL official events, the S10 Teamfight Tactics Group Tournament, highlighting female streamers, and the [EBIT referment] of Genshin Impact continuous series alongside other high-caliber self-producing events. Beyond operating content gaps during of official events off-seasons ourselves to produce events serve as pivotal platforms for talent discovery, streamer cultivation, and enhancing user engagement and interaction. In terms of premium content promotions, we reinforced the synergy between platforms online content and offline initiatives.

在整個第四季度，我們製作了超過60 場遊戲賽事，包括與KPL 官方賽事一致的KPL 學院錦標賽2023、突出女主播的S10 雲頂之弈團體賽，以及《原神》連續系列賽的[息稅前利潤參考] 以及其他高端賽事- 自行製作的活動。除了在官方活動淡季期間運作內容空白之外，我們自己製作的活動也是人才發現、主播培養以及增強用戶參與度和互動的關鍵平台。在優質內容推廣方面，加強平台線上內容與線下的連動。

During the quarter, we organized offline activities, S13 offline watching for the League of Legends World Championship and [Peaceful Adventure] for the PEACE cable segment. Leveraging the momentum of high-traffic events of League of Legends in 2023, we created an area of offline game watching gathering featuring top-tier gaming streamers and entertainment streamers. This innovative model, integrated pregame variety show live streaming, offline, e-sport find challenges, and immersive offline game viewing, presenting gamers with a fully immersive, all-inclusive e-sports content journey.

本季我們舉辦了線下活動，英雄聯盟世界賽S13線下觀賽以及PEACE有線版塊的【和平冒險】。借助2023年英雄聯盟賽事高流量的勢頭，我們打造了一個以頂級遊戲主播和娛樂主播為特色的線下觀賽聚集區。這項創新模式，集賽前綜藝直播、線下、電競尋挑戰、沉浸式線下觀賽為一體，為玩家呈現完全沉浸式、全包式的電競內容之旅。

Furthermore, it catalyzed the convergence of gaming in prime entertainment, [Franslec] We also capitalized on in-person engagement for the PEACE Cable gaming segment to enhance promotions. By introducing new redemption in-game items for gaming members, streamers competing offline task gained the ability to unlock limited offerings on in-game items. To those targeted content offerings and interactive user experience, we advanced the promotion of our game's specific membership service.

此外，它促進了遊戲在主要娛樂領域的融合，[Franslec]我們也利用 PEACE 有線遊戲領域的面對面參與來加強促銷活動。透過為遊戲會員引入新的兌換遊戲內物品，主播在競爭線下任務時獲得了解鎖遊戲內物品的有限優惠的能力。針對這些有針對性的內容提供和互動式使用者體驗，我們推進了遊戲特定會員服務的推廣。

Let's turn to our monetization. Our total number of paying users in the fourth quarter was 3.7 million with a quarterly APU RMB278. The decrease in the number of paying users seems from our strategic shift at the start of 2023 to deliberately reduced revenue generating activities and low margin sales promotions. Instead, we began focusing on enhancing the operating efficiency of revenue streams while fostering a healthy and sustainable game-centric community ecosystem.

讓我們轉向我們的貨幣化。第四季我們的付費用戶總數為 370 萬，季度 APU 為 278 元。付費用戶數量的減少似乎源自於我們在 2023 年初的策略轉變，即刻意減少創收活動和低利潤促銷。相反，我們開始專注於提高收入流的營運效率，同時培育健康且可持續的以遊戲為中心的社區生態系統。

This transition resulted in a year-over-year decline on our paying user base. Furthermore, with the macro level, consumer sentiment gradually waning in the latter half of 2023, we strategically scaled back our platform wide promotion activities in the fourth quarter. This adjustment also impacted the scale of paying users for the period. While we continue to maintain our core paying user base, given the current consumer sentiment, we offered some modest delay price to revenue-generating products to accommodate the spending habits of mid and long-tail users.

這項轉變導致我們的付費用戶群較去年同期下降。此外，隨著宏觀層面的消費者信心在2023年下半年逐漸減弱，我們在第四季策略性地縮減了平台範圍內的促銷活動。這項調整也影響了該期間的付費用戶規模。在我們繼續維持核心付費用戶基礎的同時，考慮到當前的消費者情緒，我們為創收產品提供了一些適度的延遲價格，以適應中長尾用戶的消費習慣。

Therefore, our quarterly APU marginally declined year over year and quarter over quarter. Over the past few years, we have been exploring ways to diversify our revenue stream. Thanks to our innovative commercialization initiatives, the contribution from other revenues in 2023 significantly increased year over year. In 2024 revenue diversification remains one of our focuses and we will prioritize collaborative commercialization ventures with game developers.

因此，我們的季度 APU 年比和環比略有下降。在過去的幾年裡，我們一直在探索實現收入來源多元化的方法。得益於我們創新的商業化舉措，2023年其他收入的貢獻較去年同期大幅成長。2024 年，收入多元化仍然是我們的重點之一，我們將優先考慮與遊戲開發商合作商業化企業。

First, mark DouYu users a hardcore gamers with good appetite for game port. Second, Prairie Wave sales campaigns for game ports, not only diversifying our revenue streams, but also boosted traffic on our platform. This suggests strong user interest and engagement in these activities, highlighting the robust alignment between user demand and sales for in-game item.

首先，將鬥魚用戶定位為對遊戲移植有良好胃口的鐵桿遊戲玩家。其次，Prairie Wave針對遊戲端口的銷售活動，不僅使我們的收入來源多元化，還增加了我們平台的流量。這顯示使用者對這些活動有強烈的興趣和參與度，凸顯了使用者需求和遊戲內物品銷售之間的緊密結合。

Given this insight, we intend to deepen our partnerships with more game developers, determine and promoting various approaches to commercialization for game port tailored to diverse game genres.

基於這項洞察，我們打算深化與更多遊戲開發商的合作關係，確定並推廣針對不同遊戲類型的遊戲移植的各種商業化方法。

Moving onto our technology R&D, we introduced a major version update to the DouYu in November in 2023. The update strengthened interactive functionalities between streamers and users, ways in our game centric content ecosystem, further enhancing our own engagements. We introduced a new path called The Bus on the main interface providing users with real-time updates on streamers they follow, such as live streaming status and access links as well as non-live streaming updates on streamers and [you back] host.

在技​​術研發方面，我們在 2023 年 11 月對鬥魚進行了重大版本更新。此次更新增強了主播和用戶之間的互動功能，以及我們以遊戲為中心的內容生態系統中的方式，進一步增強了我們自己的參與度。我們在主介面上引入了一條名為“總線”的新路徑，為用戶提供其關注的主播的實時更新，例如直播流狀態和訪問鏈接，以及主播和[您支持]主持人的非直播流更新。

This feature allows users to engage with streamers and leave comments even outside of livestreaming sessions. Additionally, it fosters interaction among users who follow the same streamer weighs in that streamer's communities.

此功能允許用戶甚至在直播會話之外與主播互動並發表評論。此外，它還促進了在該主播社群中關注同一主播權重的用戶之間的互動。

Furthermore, we have continued to strengthen our compliance self-assessment procedures and further centralized compliance management across the platform. This ongoing effort includes enhancing compliance standards on various fronts such as products, operations, and content moderation. We have been implementing strict compliance efforts, in particular, starting this year, we have intensified efforts to combat behaviors while raising our platform rules and policies.

此外，我們持續強化合規自評估程序，進一步加強全平台合規管理的集中化。這項持續的努力包括增強產品、營運和內容審核等各個方面的合規標準。我們一直在嚴格合規工作，特別是從今年開始，我們在完善平台規則和政策的同時，加強了打擊此類行為的力度。

This is a major measure, showed very good results with regular public announcements on our website. In the meantime, we will continue to comprehensively implement project risk provision and control mechanism while establishing product tracing procedures. Additionally, we have enhanced our interactive anti-addiction systems, prioritize the distribute complaint resolution, conducted regular reviews of great risks across the platform and ratified in regular behaviors, reinforcing risk awareness among all relevant staff.

這是一項重大舉措，取得了很好的效果，並定期在我們的網站上進行公告。同時，我們將持續全面落實專案風險撥備與控制機制，建立產品追溯程序。此外，我們也強化互動防沉迷體系，優先下發投訴解決，定期對全平台重大風險進行審核並在常態化行為中進行認可，強化全體相關人員的風險意識。

In summary, throughout 2023, we fine-tuned our offering strategies to align with the evolving market dynamics and effectively maintained the overall stability of our business operations while improving profitability. We believe that by sharpening our focus and capitalizing on the platform's core competitive edge, we can effectively foster a vibrant, healthy, diverse, game centric content ecosystems while continuing to uphold regulatory compliance. We remain unwavering in our commitment to the company's long term sustainable growth.

綜上所述，2023年，我們根據市場動態不斷調整產品策略，在提高獲利能力的同時，有效地維持了業務營運的整體穩定性。我們相信，透過更專注並利用平台的核心競爭優勢，我們可以有效地培育一個充滿活力、健康、多樣化、以遊戲為中心的內容生態系統，同時繼續維護監管合規性。我們對公司長期可持續成長的承諾始終堅定不移。

With that, I will now turn the call over to our Vice President of Finance, Mr. Hao Cao, to go through the details of our financial performance in the quarter.

現在，我將把電話轉給我們的財務副總裁曹浩先生，詳細介紹我們本季的財務表現。

Thank you, Lingling. Hello, everyone. Looking back on 2023, despite ongoing macro headwinds, we diversified our revenue streams with advertising and other revenues contributing 13.2% of our total revenue. Meanwhile, we successfully executed our cost-effective strategy, adjusting our live streaming business to prioritize healthy margins, and importantly, managing our costs and expenses to enhance our earnings. For the full year of 2023, we achieved an adjusted net income of RMB154 million.

謝謝你，玲玲。大家好。回顧 2023 年，儘管宏觀阻力持續存在，我們仍實現了收入來源多元化，廣告和其他收入佔總收入的 13.2%。同時，我們成功執行了成本效益策略，調整我們的直播業務以優先考慮健康的利潤，更重要的是，管理我們的成本和費用以提高我們的收入。2023年全年，我們實現調整後淨利1.54億元。

Let's now look at our financial performance for the fourth quarter in more detail. Total net revenues in the first quarter of 2023 decreased by 22.9% year-over-year to RMB1.3 billion. Live streaming revenues were RMB1.02 billion, a decrease of 36.1% from RMB1.6 billion in the same period of 2022. The decrease was primarily due to soft macroeconomic conditions and our deliberate reduction in revenue-generating promotions during the quarter. These factors affected the spending awareness of some new and price-sensitive paying users.

現在讓我們更詳細地了解第四季度的財務表現。2023年第一季淨收入總額年減22.9%至13億元人民幣。直播收入為人民幣10.2億元，較2022年同期的人民幣16億元下降36.1%。下降的主要原因是宏觀經濟狀況疲軟以及我們在本季刻意減少創收促銷活動。這些因素影響了一些新的、對價格敏感的付費用戶的消費意識。

Additionally, our strategic decrease in marketing spending led to a smaller user base, resulting in a year-over-year decrease in total paying users. In response to a soft consumer sentiment, we continue to offer lower-priced revenue products to maintain spending habits of our mid to long power paying users, leading to a decrease in quarterly APU. Our quarterly APU was RMB278, about 4.9% from RMB293 in the same period last year.

此外，我們行銷支出的策略性減少導致用戶群縮小，導致付費用戶總數較去年同期下降。為因應疲軟的消費者情緒，我們持續提供價格較低的收益產品，以維持中長期電力付費用戶的消費習慣，導致季度APU下降。我們的季度 APU 為 278 元，比去年同期的 293 元 293 元成長約 4.9%。

Advertising and other revenues were RMB275.2 million, a significant increase of 226.5% from RMB84.3 million in the same period of 2022. The year-over-year increase was primarily driven by other revenues generated through our new innovative businesses such as again, specific membership service and a voice paid -- voice based, social networking service. Cost of revenues in the fourth quarter of 2023 was RMB1.17 billion, a decrease of 21.8%, compared with RMB1.5 billion in the same period of 2022.

廣告及其他收入為人民幣2.752億元，較2022年同期的人民幣8,430萬元大幅成長226.5%。同比成長主要是由我們新的創新業務產生的其他收入推動的，例如特定的會員服務和語音付費——基於語音的社交網路服務。2023年第四季營收成本為人民幣11.7億元，較2022年同期的人民幣15億元下降21.8%。

Revenue-sharing fees and content costs decreased by 30.3% to RMB0.89 billion from RMB1.27 billion in the same period of 2022. The decrease was primarily driven by two factors. First, the decrease in revenue-sharing fees, which was largely in line with decreased livestreaming revenues. Second, the decrease in content costs, which was primarily attributable to improved cost management in our self-produced content and streamer payments.

收入分成費用和內容成本從2022年同期的人民幣12.7億元下降30.3%至人民幣8.9億元。下降主要由兩個因素驅動。首先，收入分成費用的減少，這在很大程度上與直播收入的減少一致。其次，內容成本下降，主要得益於自產內容和主播付費成本管理的改善。

However, this decrease was partially offset by higher copyright costs related to the LOL World Championship Tournaments. Bandwidth cost in the fourth quarter of 2023 decreased by 27.4%, RMB105.5 million from 138.4 million in the same period of 2022. The decline was primarily due to a year-over-year decrease in peak bandwidth usage.

然而，這一下降被與英雄聯盟世界錦標賽相關的更高的版權成本所部分抵消。2023年第四季頻寬成本從2022年同期的1.384億元下降了27.4%，為1.055億元。下降的主要原因是峰值頻寬使用量年減。

Gross profit in the fourth quarter of 2023 was RMB126.2 million compared with RMB186.1 million in the same period of 2022. The decline in gross profit was primarily attributable to decreased live streaming revenues. Gross margin in the fourth quarter of 2023 was 9.7% compared with 11.1% in the same period of 2022. The decrease in gross margin was mainly attributable to the increase in other costs and copyright costs as a percentage of revenues, which was partially offset by the decreased percentage of revenues attributed to revenue-sharing fees.

2023年第四季毛利為人民幣1.262億元，而2022年同期毛利為人民幣1.861億元。毛利下降主要歸因於直播收入下降。2023年第四季毛利率為9.7%，而2022年同期毛利率為11.1%。毛利率下降的主要原因是其他成本和版權成本佔收入的百分比增加，但部分被收入分成費收入百分比的下降所抵銷。

Sales and marketing expenses in the fourth quarter of 2023 were RMB84 million, a significant decrease of 32.2% from RMB123.9 million in the same period of 2022. This was mainly attributable to a decrease in marketing expenses for user acquisition as well as a decline in staff related expenses. Research and development expenses in the fourth quarter of 2023 were RMB59.1 million, representing a 26.7% decrease from RMB80.6 million in the same period of 2022. This decrease was primarily due to a decrease in staff related expenses.

2023年第四季銷售及行銷費用為人民幣8,400萬元，較2022年同期的人民幣1.239億元大幅下降32.2%。這主要是由於用戶獲取行銷費用的減少以及員工相關費用的減少。2023年第四季研發費用為人民幣5,910萬元，較2022年同期的人民幣8,060萬元下降26.7%。這一減少主要是由於員工相關費用減少。

General and administrative expenses in the fourth quarter of 2023 were RMB80 million, an increase of 45% from RMB55.2 million in the same period of 2022. The increase was due to higher salary expenses associated with management position adjustments, increased expenses related to our organizational streamlining initiatives, as well as an increase in the provisions for assets. Loss from operations was RMB120.4 million in the fourth quarter of 2023, compared with RMB56 million in the same period of 2022.

2023年第四季的一般及行政費用為人民幣8,000萬元，較2022年同期的人民幣5,520萬元成長45%。增加的原因是管理職位調整相關的薪資費用增加、組織精簡措施相關的費用增加以及資產準備金的增加。2023年第四季營運虧損為人民幣1.204億元，而2022年同期為人民幣5,600萬元。

Adjusted operating loss, which adds back impairment loss of goodwill and intangible assets was RMB86.4 million in the fourth quarter of 2023 compared with RMB56 million for the same period of 2022. Net loss in the fourth quarter of 2023 was RMB62.2 million compared with net income of RMB41.8 million in the same period of 2022. Adjusted net loss, which excludes share-based compensation expense, the share of income or loss in equity method investments gain on disposal of investment, impairment loss of investments and impairment loss of goodwill and intangible assets was RMB5 million in the fourth quarter of 2023 compared with RMB4.3 million in the same period of 2022.

2023年第四季調整後的營運虧損（加上商譽及無形資產減損損失）為人民幣8,640萬元，而2022年同期為人民幣5,600萬元。2023年第四季淨虧損為人民幣6,220萬元，而2022年同期淨利為人民幣4,180萬元。2023年第四季調整後淨虧損（不含股權激勵費用、應佔權益法投資收益或處分投資收益損失、投資減損損失以及商譽及無形資產減損損失）為500萬元人民幣2022年同期為人民幣430萬元。

For the fourth quarter of 2023, basic and diluted net loss per ADS were both RMB0.19, while adjusted basic and diluted net loss per ADS were both RMB0.02. As of December 31, 2023, the company had cash and cash equivalents, restricted cash, restricted cash in other noncurrent assets and short-term and long-term deposits of RMB6.86 billion compared with RMB6.81 billion as of December 31, 2022.

2023年第四季，每股美國存託股基本及稀釋淨虧損均為人民幣0.19元，調整後每股美國存託股基本及稀釋淨虧損均為人民幣0.02元。截至2023年12月31日，公司現金及現金等價物、受限現金、其他非流動資產中受限現金以及短期及長期存款為人民幣68.6億元，而截至2022年12月31日為人民幣68.1億元。

Looking forward, we are committed to enhancing revenue diversification, optimizing operating efficiencies, and prudently managing costs and expenses. By remaining agile in our responses to market dynamics and diligently executing our core growth strategy, we are confident we can overcome the short-term challenges and foster the long-term healthy development of our platform while also delivering value to our shareholders.

展望未來，我們致力於增強收入多元化，優化營運效率，審慎管理成本和費用。透過維持對市場動態的敏捷反應和勤勉地執行我們的核心成長策略，我們有信心能夠克服短期挑戰，促進我們平台的長期健康發展，同時為股東創造價值。

This concludes our prepared remarks for today. Operator, we are now ready to take questions.

我們今天準備好的演講到此結束。接線員，我們現在準備好回答問題。

We will now begin the question-and-answer session. (Operator Instructions)

我們現在開始問答環節。（操作員說明）

Brian Gong, Citigroup.

布萊恩龔，花旗集團。

(spoken in foreign language)

（用外語說）

I'll translate it myself. Thanks, management, for taking my question. With more games now can be [lapper] across the -- on DouYu's platform, how should we see the stability of our streamers and how should we see the future trend? Thank you.

我自己來翻譯一下。謝謝管理層回答我的問題。現在越來越多的遊戲可以跨入鬥魚平台，我們該如何看待主播的穩定性以及未來的趨勢？謝謝。

Thank you for your question. So overall, our streamers have remained relatively stable. We have exclusive cooperation agreements with our platform's top-tier streamers, securing stability throughout relevant contract terms. For core streamers whose agreements are about expire, we've developing market condition in mind. We actively engaged in renewal discussions with them in advance. We comprehensively assess contract cost and operating efficiencies and selectively negotiate and renew contracts. Over the years, DouYu's game centric content ecosystem has foster our wide array of influential streamers. What I need to highlight here is for some of those have emerges breakup streamers began their live streaming journey as gaming streamers on DouYu.

謝謝你的問題。所以整體來說，我們的主播保持相對穩定。我們與我們平台的頂級主播簽訂了獨家合作協議，確保相關合約條款的穩定性。對於協議即將到期的核心主播，我們會考慮發展市場狀況。我們提前積極與他們進行續約討論。我們全面評估合約成本和營運效率，並選擇性地談判和續約合約。多年來，鬥魚以遊戲為中心的內容生態系統培養了許多有影響力的主播。我在這裡需要強調的是，一些已經出現分手的主播開始了他們在斗魚上作為遊戲主播的直播之旅。

Their achievements underscore DouYu's prowess in nurturing and supporting streamers. Building upon our years of experience in gaming content operations, we have developed a sophisticated and effective mechanism for identifying and competing gaming streamers. Firstly, our platform offers streamers a multitude of content production options based on our commitment to content innovation and diversity. Secondly, our data analyzes towards empower streamers with better insights into user needs and market dynamics, enabling them to fine-tune their live streaming strategies, enhance quality, and boost efficiency.

他們的成就凸顯了鬥魚在培育和支持主播方面的實力。基於我們多年的遊戲內容營運經驗，我們開發了一套複雜有效的機制來識別和競爭遊戲主播。首先，我們的平台是基於我們對內容創新和多樣性的承諾，為主播提供了多種內容製作選項。其次，我們的數據分析讓主播更能洞察用戶需求和市場動態，進而調整直播策略，提高質量，提高效率。

Unlike short video platforms, we provide our streamers not merely algorithm-based data insights, but also with customized resources and content support based on each streamers' unique characteristics. This approach grants streamers, ample time for development well in point and to grow. We are intensifying our focus on refining operations on customizing our services and support to streamers across different tiers. To build on the existing influenced of top-tier streamers, we continued to reinforce their brand presents an impact by enhancing streamer IP to high-quality content and strategic operations, channeling and driving traffic, both within and beyond our platform.

與短視頻平台不同，我們不僅為主播提供基於演算法的數據洞察，還根據每個主播的獨特特徵提供客製化的資源和內容支援。這種方法為主播提供了充足的時間進行適當的開發和成長。我們正在加強對改善營運的關注，為不同層級的主播量身訂做我們的服務和支援。為了鞏固頂級主播的現有影響力，我們透過將主播 IP 提升為高品質內容和策略運營，在我們的平台內外引導和推動流量，繼續強化他們的品牌影響力。

With mid-tier streamers, we mainly focus on increasing their visibility by inviting them to participate in our self-produced events and programs. Additionally, some of our original e-sports player streamers have gained significant recognition and user claims through our core streamed live commentary programs during the broadcast of official tournaments. With our platform support, many has rapidly as needed to the top-tier.

對於中層主播，我們主要透過邀請他們參加我們自製的活動和節目來提高他們的知名度。此外，我們的一些原創電競選手主播在官方比賽轉播期間透過我們的核心直播解說節目獲得了顯著的認可和用戶好評。借助我們的平台支持，許多已根據需要迅速躋身頂級。

For mid to long-term streamers, our priority is to provide them with solid fundamentals that support their continued presence and space for growth. Over the past year, we have initiated incentive programs in various gaming segments, encouraging up-and-coming streamers to go live and actively engage with the audience so that they can secure relatively stable incomes. During our insights from the ongoing data analyses, we also enable mid to long-term streamers with more timely and customized content support.

對於中長期的主播，我們的首要任務是為他們提供堅實的基礎，支持他們的持續存在和成長空間。過去一年，我們在遊戲各個細分市場啟動了激勵計劃，鼓勵新晉主播積極上線，積極與觀眾互動，獲得相對穩定的收入。根據持續數據分析的見解，我們也為中長期主播提供更及時且客製化的內容支援。

Apart from refined content operations, we will also offer more commercialization avenues for streamers through deeper cooperation with game developers. These will include game promotion [in itself] among other revenue generating opportunities across various game genres.

除了精細化的內容營運外，我們還將透過與遊戲開發商的更深入合作，為主播提供更多的商業化途徑。其中將包括遊戲推廣[本身]以及各種遊戲類型的其他創收機會。

Our endeavors will increase streamer income, sentimenting and elevating DouYu's value as a vibrant, gaming centric content ecosystem. Top-tier streamers represent invaluable assets within the industry. As the live streaming sector matures, there's always competition over streamers resources within legal compliance. Through DouYu's decade-long journey, we have continuously navigated this competitive landscape for high-quality streamers. Like I said, our advantages, such as exclusive contracts and streamer nurturing programs are the cornerstone of our ongoing success within the competitive streamer market.

我們的努力將增加主播收入，提升鬥魚作為一個充滿活力、以遊戲為中心的內容生態系統的價值。頂級主播代表著業界的無價資產。隨著直播產業的成熟，在合法合規的情況下，主播資源的競爭始終存在。在斗魚十年的歷程中，我們不斷在優質主播的競爭格局中前進。正如我所說，我們的優勢，例如獨家合約和主播培育計劃，是我們在競爭激烈的主播市場中持續取得成功的基石。

Thank you. Next question, please.

謝謝。請下一個問題。

Excuse me for the benefit of all participants on today's call, if you wish to ask your question to management in Chinese, please immediately repeat your question in English.

對不起，為了今天電話會議所有參與者的利益，如果您想用中文向管理層提出問題，請立即用英語重複您的問題。

Lei Zhang, Bank of America Merrill Lynch.

張磊，美銀美林。

(spoken in foreign language)

（用外語說）

Thanks, management, for taking my question. My question is in regard to your 2024 outlook, can you give us more color on your strategy and if it makes sense, are you concerned for? Thank you.

謝謝管理層回答我的問題。我的問題是關於您 2024 年的展望，您能給我們更多關於您的策略的資訊嗎？如果有意義的話，您擔心什麼？謝謝。

Thank you for your question. As we mentioned in our prepared remarks, our 2024 plan and focus will revolve around the covenant is three core trends, streamer, content, and the cooperation with game developers. Let me walk you through the branch one by one. In terms of a streamer results, our approach includes the three key initiatives. Firstly, we will concentrate on our core streamer resources by enhancing streamer IP and fortifying IP operations. By managing and promoting streamer account, both across and beyond our platform, we aim to bolster streamer appeal and drive increased traffic building our platform.

謝謝你的問題。正如我們在準備好的演講中所提到的，我們 2024 年的計畫和重點將圍繞著三個核心趨勢：串流媒體、內容以及與遊戲開發商的合作。讓我帶您一一瀏覽一下分支。就串流媒體結果而言，我們的方法包括三個關鍵舉措。一是聚焦核心主播資源，做強主播IP，強化IP營運。透過在我們的平台內外管理和推廣主播帳戶，我們的目標是增強主播吸引力並增加我們平台的流量。

Secondly, we will prioritize fostering gaming streamers and recruiting more e-sports professional players. Further, we will diversify our streamers and monetization avenues through cooperation with game developers. In terms of our content ecosystem, our goal is to elevate content ROI, while affording premium quality. We strive to balance of all content cost by optimizing the number of official e-sports tournaments and self-produced gaming events. Additionally, we are delving into direct commercialization prospects for gaming event content such as resource sharing and game product sales to improve the ROI of our gaming content.

其次，我們將專注於培育遊戲主播，招募更多電競職業選手。此外，我們將透過與遊戲開發商的合作，使我們的主播和貨幣化途徑多樣化。就我們的內容生態系統而言，我們的目標是提高內容投資報酬率，同時提供優質的服務。我們努力透過優化官方電競比賽和自製遊戲賽事的數量來平衡所有內容成本。此外，我們正在深入研究遊戲活動內容的直接商業化前景，例如資源共享和遊戲產品銷售，以提高遊​​戲內容的投資報酬率。

Our advancements in both streamer and content are closely tied to our cooperation with game developers. We have now centralized our resources and planning effort shifting away from our past approach where each business unit independently provided a collaborative proposals. By fully understanding our users' content and the gaming needs, we can pursue more in-depth collaborations with game developers.

我們在主播和內容方面的進步與我們與遊戲開發商的合作密切相關。我們現在已經集中了我們的資源和規劃工作，改變了過去每個業務部門獨立提供協作建議的方法。透過充分了解用戶的內容和遊戲需求，我們可以與遊戲開發人員進行更深入的合作。

Additionally, we are tailoring game promotion, operations, and commercialization strategies for game developers based on each game's specific development stage. To facilitate more effective execution of our plans and amplify the scenery of our core strength, we began an organizational restructuring at the outset of 2024, particularly, within business units related to our content ecosystem. We used to structure our content ecosystem business units around the individual gaming projects, with 15 teams under each business unit, mandatory streamer, operations, events and activities, and game developer collaboration.

此外，我們還根據每個遊戲的具體發展階段，為遊戲開發商量身定制遊戲推廣、營運和商業化策略。為了更有效地執行我們的計劃並擴大我們的核心優勢，我們在 2024 年初開始了組織重組，特別是在與我們的內容生態系統相關的業務部門內。我們過去常常圍繞各個遊戲專案建立內容生態系統業務部門，每個業務部門下有 15 個團隊、強制主播、營運、賽事和活動以及遊戲開發者協作。

Our restructuring has enabled us to shift away from game-based operations and consolidate fragmented result associated with gaming segments. Our internal communication channel are now more streamlined, allowing us to amplify our platform as a collective strength. In short, our goal this year are to enhance compliance while improving content quality and user experience. We are committed to diversifying revenue streamers and continuously optimizing cost and expense. In doing so we can stabilize and promote long-term healthy platform growth amidst a continually evolving market dynamic. Thank you.

我們的重組使我們能夠擺脫基於遊戲的運營，並整合與遊戲細分市場相關的分散業績。我們的內部溝通管道現在更加簡化，使我們能夠擴大我們的平台作為集體力量。簡而言之，我們今年的目標是增強合規性，同時提高內容品質和使用者體驗。我們致力於實現收入來源多元化並持續優化成本和費用。透過這樣做，我們可以在不斷變化的市場動態中穩定並促進長期健康的平台成長。謝謝。

Excuse me, Ms. Zhang, are you don with your question?

打擾一下，張小姐，您有什麼疑問嗎？

Yes, next question, please.

是的，請下一個問題。

Yeah.

是的。

Raphael Chen, BOCI Research.

陳拉斐爾，中銀國際研究部。

(spoken in foreign language)

（用外語說）

Thank you management for taking my question. I'm just wondering how does management team evaluates the impact of some top tier Tencent games such as Honor of Kings and League of Legends being granted to stream outgoing platform. Thank you.

感謝管理層回答我的問題。我只是想知道管理團隊如何評估騰訊一些頂級遊戲（例如《王者榮耀》和《英雄聯盟》）被授予串流平台的影響。謝謝。

Thank you, Raphael. So the user base of China's Internet and gaming sector is near situation. In response, starting last year, Internet platforms started pivoting away from traditional traffic acquisition methods, instead, they have been prioritizing core business operations and competitive strengths, improving operating efficiencies and foster cross-platform collaborations. So cross-platform content sharing is emerging as a strategic trend. We have actively embraced the trend of open content. We have focused on our core strengths to fortify business fundamentals, also diversified our business scope and models, being mindful of competition risks while seeking diverse opportunities, we have been actively innovating our content offerings and fostering cross-platform collaborations.

謝謝你，拉斐爾。由此可見，中國互聯網和遊戲產業的使用者基礎已接近現狀。對此，從去年開始，網路平台開始擺脫傳統的流量取得方式，轉而優先發展核心業務和競爭優勢，提高營運效率，促進跨平台合作。因此，跨平台內容共享正在成為一種策略趨勢。我們積極擁抱開放內容的趨勢。我們聚焦核心優勢，夯實基礎，豐富業務範圍與模式，注重競爭風險，尋求多元化機會，積極創新內容，促進跨平台合作。

In addition to producing differentiated and appealing content integrating our streamers unique characteristics, we've also explored cooperation avenues with other platforms to expand our content ecosystem, launching joint promotions and collaborative initiatives powered by the premium content features on our platform. For example, we have been progressively highlighting on partnerships with other platforms based on each party's top-tier exclusive streamer resources. We've been working on complementary content synergies, offering e-sport live streaming users more premium content and more convenient viewing options.

除了製作融合我們主播獨特特徵的差異化和有吸引力的內容外，我們還探索與其他平台的合作途徑，以擴大我們的內容生態系統，推出由我們平台上的優質內容功能支持的聯合促銷和協作計劃。例如，我們基於各自的頂級獨家主播資源，逐步強調與其他平台的合作。我們一直致力於內容互補的綜效，為電競直播用戶提供更多優質內容和更便利的觀看選擇。

Additionally, in the second half of 2023, we started highlighting content promotions on retail channels with selected streamers. These enables streamers to scenic their live streaming content on retail channels to improve their content's visibility. Given the vast video user base of short video platform, we might encounter certain challenges in the short term, particularly potential downward pressure in MAUs this year. We have proactively addressed these risks by leveraging our strengths.

此外，在 2023 年下半年，我們開始與選定的主播一起在零售通路上專注於宣傳內容促銷活動。這些使串流媒體能夠在零售管道上展示他們的直播串流內容，以提高其內容的可見性。鑑於短視頻平台龐大的視訊用戶基礎，短期內我們可能會遇到一定的挑戰，特別是今年月活躍用戶數潛在的下行壓力。我們利用自身優勢，積極應對這些風險。

As part of our primitive measures, we deepened our operation around the gaming needs of our core users, including consistently rolling out high quality content and operational activities and updating on product features to fulfill diverse user needs. According to our data analyses so far, despite MAU declines, our platform's core user behavior metrics remain relatively stable.

作為原始措施的一部分，我們圍繞核心用戶的遊戲需求深化運營，包括持續推出高品質的內容和運營活動，以及更新產品功能以滿足多樣化的用戶需求。根據我們迄今為止的數據分析，儘管每月活躍用戶數下降，但我們平台的核心用戶行為指標仍然相對穩定。

Moreover, leveraging insights from our prior commercial collaborations, our marketing campaign centered around game ops including limited time styles during livestreaming sessions and regular game membership services that not only contribute to revenue diversification, but also foster new user acquisition while deepening existing user engagement. Moving forward, we will continuously explore more operational models to solidify our core user base and to pursue opportunities to propel growth across our platform. Thank you.

此外，利用我們先前商業合作的見解，我們的行銷活動以遊戲營運為中心，包括直播期間的限時風格和常規遊戲會員服務，這不僅有助於收入多元化，而且還可以在加深現有用戶參與度的同時促進新用戶的獲取。展望未來，我們將持續探索更多營運模式，以鞏固我們的核心用戶基礎，並尋求推動整個平台成長的機會。謝謝。

Operator, next question, please.

接線員，請下一個問題。

Derek Fei, Morgan Stanley.

德瑞克費，摩根士丹利。

(spoken in foreign language)

（用外語說）

Thank you, management. We noticed that the company has made significant progress in the known live streaming revenue in 2023, and you just mentioned earlier that diversifying revenue is one of the key focus for 2024. Could you please share more details about the plans and the goals for the upcoming year. Thanks.

謝謝你，管理階層。我們注意到該公司在2023年已知的直播收入方面取得了重大進展，您剛才提到收入多元化是2024年的重點之一。您能否分享更多有關來年計劃和目標的詳細資訊？謝謝。

Thank you, Derek. In 2023, advertising and other revenues surged by 135% year over year with its revenue contribution increasing from 4.4% in 2022 to 13.2%. This remarkable growth was driven by revenues from our new revenue-generating models. Capitalizing on strengths in gaming content operations, we expanded it into two. We have been exploring diverse avenues for commercialization beyond the traditional virtual gifting model. The robust growth of gaming membership business on a set of smaller innovative initiatives such as our voice-based social networking service contributed to other revenues in 2023.

謝謝你，德里克。2023年，廣告及其他收入年增135%，收入貢獻從2022年的4.4%增加至13.2%。這一顯著的成長是由我們新的創收模式帶來的收入所推動的。利用遊戲內容營運的優勢，我們將其擴展為兩個。我們一直在探索傳統虛擬禮物模式之外的多種商業化途徑。遊戲會員業務的強勁成長得益於一系列較小的創新舉措，例如我們基於語音的社交網路服務，為 2023 年的其他收入做出了貢獻。

In 2024, we plan to dive deeper into commercialization directly related to games. Given that the majority of our platform's core users of gamers, there's a clear demand for game prompts and new games, which closely align with our performance gaming content. Firstly, we will bolster and broaden the scope of gaming membership business, aiming to expand this service to more game genres. We plan to unveil new revenue-generating products and marketing strategies tailored to distinctive characteristics and player needs.

2024年，我們計劃更深入地涉足與遊戲直接相關的商業化。鑑於我們平台的核心用戶大部分是遊戲玩家，對遊戲提示和新遊戲有明確的需求，這與我們的效能遊戲內容緊密結合。首先，我們將加強並擴大遊戲會員業務範圍，旨在將這項服務擴展到更多遊戲類型。我們計劃推出針對獨特特徵和玩家需求的新創收產品和行銷策略。

Secondly, we will ramp up our focus on performance-based game promotions. We intend to pivot away from streamers sponsored product placements and gradually transition to performance-based promotions such as cost per sale model. Streamers will have the flexibility to select new games for promotion based on their expertise and audience preferences. This CPS model has been operational for some time now, yielding promising results with conversion rate surpassing market average.

其次，我們將加大對基於表演的遊戲促銷的關注。我們打算擺脫主播贊助的植入式廣告，並逐步過渡到基於效果的促銷，例如每次銷售成本模式。主播將可以根據自己的專業知識和受眾偏好靈活地選擇新遊戲進行推廣。這個CPS模型已經運行了一段時間，取得了可喜的成果，轉換率超過了市場平均水準。

Furthermore, our other smaller innovative businesses have shown promising momentum and are now making revenue contributions. While these ventures currently operate on modest scale, we will keep you informed of their progress and expand. Overall, we anticipate advertising and other revenues will grow year over year in 2024, with their overall revenue share exceeding 20%. Given the impact of macroeconomic mass factors and internal operational adjustments, our traditional live-streaming business, we expect live streaming revenues to experience downward pressure in 2024 as the overall revenue share from live-streaming remains significant.

此外，我們其他規模較小的創新業務也表現出了良好的勢頭，目前正在做出收入貢獻。雖然這些企業目前營運規模不大，但我們將隨時向您通報其進展和擴張情況。整體而言，我們預計2024年廣告和其他收入將年增，其整體收入份額將超過20%。考慮到宏觀經濟體量因素和內部營運調整的影響，我們傳統的直播業務，我們預計2024年直播收入將面臨下行壓力，因為直播的整體收入份額仍然很大。

The rapid growth of our innovative businesses may have comparatively limited effort -- effect on the company's overall revenue scale. Despite potential short-term growth pressures as we fine-tune our core business, the company's financial remains solid and we continue to pursue breakthroughs in our innovative businesses. For example, in October 2023, we joined hands with [Taobao] and game developers to launch the game Shopping Bonanza on DouYu's official live streaming channels on the Taobao platform as well as live streaming sessions on DouYu's platform, selling game products and gaming merchandise from popular mobile games like Genshin Impact, League of Legends, Dota 2, and CrossFire.

我們創新業務的快速成長，對公司整體營收規模的影響可能相對有限。儘管核心業務調整面臨短期成長壓力，但公司財務狀況依然穩健，創新業務不斷尋求突破。例如，2023年10月，我們攜手【淘寶】及遊戲開發商，在淘寶平台鬥魚官方直播頻道推出遊戲《購物大亨》，並在斗魚平台直播，銷售遊戲產品及遊戲商品。流行的手機遊戲，如《原神》、《英雄聯盟》、《Dota 2》和《穿越火線》。

Gamers has showed considerable demand for those offerings. The result of this campaign proved that streamers have a substantial influence on gaming commercialization on building vast potential opportunities. Moving forward, we will delve deeper into additional revenue generating avenues within the gaming content value chain. Thank you. Next question, please.

遊戲玩家對這些產品展現了巨大的需求。這次活動的結果證明，主播對遊戲商業化有重大影響力，可以創造巨大的潛在機會。展望未來，我們將更深入研究遊戲內容價值鏈中的其他創收途徑。謝謝。請下一個問題。

Thomas Chong, Jefferies.

托馬斯莊，杰弗里斯。

(spoken in foreign language)

（用外語說）

I'll translate for myself. So I have two questions. My first question is, so we saw the year-over-year and quarter-over-quarter increase of the G&A expenses. So could we share the reason behind and how the management see the trend of operating expenses and the profitability in 2024? And my second question is about share buyback program. So we announced the share repurchase program and we will share our strategy of share buybacks, and do we consider increased amount of buybacks? Thanks

我自己來翻譯一下。所以我有兩個問題。我的第一個問題是，我們看到一般管理費用較去年同期成長。那麼我們能否分享一下背後的原因以及管理階層如何看待2024年營業費用和獲利能力的趨勢？我的第二個問題是關於股票回購計畫。所以我們宣布了股票回購計劃，我們會分享我們的股票回購策略，我們是否考慮增加回購數量？謝謝

Thank you. I will answer the first question. There are two reasons for the year-over-year and sequential increase in operating expenses in the fourth quarter. First, and onset of 2024, we announced an organizational restructuring that will allow us to better respond to market dynamics and continually optimize the company's operating efficiency. As part of our staff were aligned to managerial actions, a portion of their salaries were allocated to the initiative expenses in the fourth quarter without an increase in employee salaries under administrative expenses. We also incurred some one-time personnel costs as part of our ongoing workforce optimization efforts. This is for a part of our preliminary organizational structure adjustments, and we anticipate further workforce adjustments in the first quarter of 1024.

謝謝。我來回答第一個問題。第四季營業費用年比和季後增加的原因有兩個。首先，從 2024 年開始，我們宣布進行組織重組，這將使我們能夠更好地應對市場動態並持續優化公司的營運效率。由於我們的部分員工與管理行動保持一致，他們的部分薪資被分配到第四季度的主動支出中，而管理費用下的員工薪資並沒有增加。作為我們持續的勞動力優化工作的一部分，我們也產生了一些一次性人員成本。這是我們初步組織架構調整的一部分，我們預計1024年第一季還會有進一步的人員調整。

Second, we made provisions for bad debt of doubtful account receivables. The combination of these one-time expenses caused part of the increase in operating expenses for the fourth quarter. And our goal of long-term sustainable growth throughout 2023, we adjusted our revenue and marketing strategies while continuing to make ROI driven decisions and consistently optimizing our cost structure.

二是提列呆帳壞帳準備。這些一次性費用加起來造成了第四季度營運費用的部分增加。為了實現 2023 年長期可持續成長的目標，我們調整了收入和行銷策略，同時繼續做出投資回報率驅動的決策並持續優化成本結構。

These coordinated efforts resulted in a 28.7% year-over-year decrease in operating expenses for the full year of 2023. Importantly, we have successfully transformed losses into gains at the adjusted net profit level. Heading into 2024, our focus remains on enhancing our diversified commercialization capabilities across the platform while maintaining stringent control of our operating expenses. We are dedicated to upholding the company's financial stability in order to navigate complex and evolving macroeconomic dynamics.

這些協調一致的努力使得 2023 年全年營運費用年減 28.7%。重要的是，我們已經在調整後的淨利潤水準上成功轉虧為盈。進入2024年，我們的重點仍然是增強整個平台的多元化商業化能力，同時嚴格控制營運費用。我們致力於維護公司的財務穩定性，以應對複雜且不斷變化的宏觀經濟動態。

Let me answer your second question around by the buyback. We have been overcoming challenges arising from a blend of macroeconomic conditions and the operational aspects. The company's Board of Directors and the Interim Management Committee are fully committed to addressing these challenges head-on. As part of our strategic initiatives, we announced our share repurchase program on December 28, 2023, on which we plan to repurchase up to USD20 million of the company's ordinary shares through ABS purchases.

讓我透過回購來回答你的第二個問題。我們一直在克服宏觀經濟條件和營運方面帶來的挑戰。公司董事會和臨時管理委員會完全致力於正面回應這些挑戰。作為我們策略舉措的一部分，我們於2023年12月28日宣布了股票回購計劃，計劃透過購買ABS回購最多2000萬美元的公司普通股。

This initiative highlights our confidence in the value of the company as well as our commitment to enhancing shareholder returns. We are currently in the initial phase of implementing our share repurchase program. Future adjustments to the program may be based on the company's strategic prioritize and ongoing review of market conditions.

這項舉措凸顯了我們對公司價值的信心以及我們對提高股東回報的承諾。我們目前正處於實施股票回購計畫的初始階段。該計劃的未來調整可能基於公司的策略重點和對市場狀況的持續審查。

Beyond the returns, the foundation of enhancing shareholder value lies in the company's fundamental [strengths] to operations. We have proven our business model is generally [intertwined] and I strongly believe in our company's long-term growth potential. Management's primary focus remains on executing our business strategies, identifying opportunities amidst the challenges and propelling the company towards long-term sustainable growth. Throughout this journey, we will continue to shore up our fundamentals, providing regular updates on our business operations and the share repurchase program. Thank you. Operator, please.

除了回報之外，提升股東價值的基礎在於公司的經營根本。我們已經證明我們的商業模式總體上是[交織在一起的]，我堅信我們公司的長期成長潛力。管理層的主要重點仍然是執行我們的業務策略，在挑戰中發現機會並推動公司實現長期永續成長。在整個過程中，我們將繼續鞏固我們的基本面，並定期更新我們的業務營運和股票回購計畫。謝謝。接線員，請說。

Thank you. That's all the time we have for questions. I will now turn the call back over to management for closing remarks.

謝謝。這就是我們提問的時間。我現在將把電話轉回給管理層以供結束語。

On behalf of our Interim Management Committee, we thank you for joining our call. We look forward to speaking with everyone next quarter.

我們代表臨時管理委員會感謝您加入我們的電話會議。我們期待下個季度與大家交談。

The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.

會議現已結束。感謝您參加今天的演講。您現在可以斷開連線。